Naira falls to N1,398/$, hits weakest level since January

What the data is saying

The naira depreciated for most of the week, reflecting persistent pressure in the foreign exchange market.

• It opened on Monday at N1,376/$ before weakening to N1,390/$ on Tuesday.
• The currency recorded its only gain of the week on Wednesday, appreciating slightly to N1,382/$.
• However, the recovery proved short-lived as the naira resumed its downward trend, closing at N1,388/$ on Thursday and weakening further to N1,398/$ on Friday.

The recent decline also extends a broader weakening trend that began in mid-February. From N1,337/$ recorded on February 17, the currency has gradually lost value in subsequent trading sessions.

Market analysts attribute the naira’s latest slide to ongoing foreign exchange liquidity constraints and continued speculative activity in the market.

Reports by Nairametrics indicate that limited dollar supply has sustained pressure on the local currency, while the gap between the official and parallel markets continues to influence trading behaviour.

More insights 

Despite the recent depreciation, the Central Bank of Nigeria has pointed to improvements in Nigeria’s external reserve position.

• CBN Governor Olayemi Cardoso recently disclosed that the country’s net foreign exchange reserves rose to $34.80 billion at the end of 2025, while gross reserves climbed to $50.45 billion as of February 2026.
• The apex bank believes stronger oil earnings and improved foreign inflows could help support reserve levels and stabilise the currency over the medium term.

External factors have also contributed to the naira’s weakness.

The U.S. dollar has strengthened to a three-month high amid rising geopolitical tensions in the Middle East, putting additional pressure on emerging market currencies, including the naira.

What you should know 

According to projections contained in the Central Bank of Nigeria 2026 Macroeconomic Outlook for Nigeria, the country’s external reserves could rise further to $51.04 billion in 2026, supported largely by higher oil revenues.

• Earlier this week, Nairametrics reported that the naira had shown signs of relative stability compared with the sharp volatility experienced in previous years, although the currency remains vulnerable to domestic liquidity constraints and global economic uncertainties.
• On Monday, Nairametrics reported that the naira weakened to N1,376 per dollar as the U.S. currency rallied globally following renewed geopolitical tensions in the Middle East.

The dollar index climbed nearly 1% on Monday, marking its strongest single-day gain in seven months as investors sought safety.